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Unformatted text preview: ECO 4933 Engineering Economics Practice Problems Problem 1 If you make the following series of deposits at an interest rate of 10% compounded annually, what would be the total balance at the end of 10 years? A. $ F = 22,256 B. $ F = 24,481 * C. $ F = 24,881 D. $ F = 25,981 Problem 2 To withdraw the following $ 1,000 payment series in the figure, determine the minimum deposit (P) you should make now if your deposits earn an interest rate of 10 % compounded annually. Note that you are making another deposit at the end of year 7 in the amount of $ 500. With the minimum deposit P, your balance at the end of year 10 should be 0. A. P = $ 4,912 B. P = $ 4,465 C. P = $ 5,374 * D. P = $ 5,912 Problem 3 What is the future worth of an equal quarterly payment series of $2,500 for 10 years if interest rate is 9% compounded monthly? A. F = $ 158,653 B. F = $ 151,930 C. F = $ 154,718 D. F = $ 160,058 * Problem 4 A couple is planning to finance their 5-year-old daughter's college education. They were able establish a A couple is planning to finance their 5-year-old daughter's college education....
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This note was uploaded on 07/29/2011 for the course EGN 3612 taught by Professor Staff during the Fall '09 term at UNF.
- Fall '09